Government advises power
companies to import 46 million tons coal in 2012-13

Government has advised power generating utilities to
import 46 million tonnes of coal in the current fiscal to bridge the gap
between demand for coal and its domestic supply, power minister Jyotiraditya ScindiaBSE
-4.96 % said on Thursday.

The total requirement of coal in 2012-13 has been calculated as 500 million
tonnes including 476 million tonnes indigenous coal and 24 million tonnes
imported coal, the minister said in Lok Sabha.

The total domestic coal availability from Coal India LtdBSE -0.59 %, Singareni
Colliery Company Ltd and captive mines is only 407 million tonnes. Coal India
Limited has decided to acquire coal resources abroad to bridge the increasing
demand supply gap and enhance energy security of the country, he said.

The thrust areas of this overseas venture are to acquire thermal coal assets,
undertake their exploration, operate the mines and import the produce to India
for supply to thermal power plants, he said.

Also against a gas requirement of around 85 million metric standard cubic meter
per day(MMSCMD) at 90% plant load factor, 35 MMSCMD gas is being supplied to
the gas-based power stations in the country, he said.

(Economic Times)

IRON ORE

Indian iron ore mining mess - CAG
pegs loss at USD 3 billion

The Comptroller and Auditor General of India has almost endorsed the
Karnataka Lokayukta report on illegal iron ore mining and pegged the total loss
due to illegal exports of ore at INR 15,245 crore from 2003 to 2010.

Besides, the CAG has estimated INR 3414.45 crore loss to the State Exchequer
due to compliance deficiencies. However, unlike the Lokayukta report, the
supreme audit institution of India has not directly indicted any public
servant.

In its report on Controls and Systems for Sustainable Mining in Karnataka,
tabled in the Legislative Assembly on December 12th, the CAG said that delay in
framing the Karnataka Minerals Rules till April 2011 resulted in the absence of
controls on transportation, leading to illegal mining and export. This caused
huge revenue loss to the exchequer.

The report said that “This is evidenced from the statement made by the CM on
the floor of the Assembly on July 9th 2010, wherein it was stated that as
against the permitted quantity of 4.7043 million metric tonnes of iron ore, a
quantity of 77.534 million metric tonne was exported. This resulted in as much
as 30.491 million metric tonnes of iron ore valued at INR 15,245 crore being
exported without valid permits from 2003-04 to 2009-10.”

The then Lokayukta Justice Mr Santosh Hegde, in his report on illegal mining
submitted to the State government in 2010, had estimated the total loss at INR
16,085 crore between 2006-07 and 2009-10. He had indicted the then chief
minister Mr BS Yeddyurappa and the then ministers from Bellary.

While the Lokayukta investigated issues related to illegal mining of iron ore,
the CAG has conducted the performance appraisal of the controls and systems in
the mining sector. This apart, the CAG has estimated that the loss caused through
damages to the State highways, major district roads and bridges due to
transportation of iron ore at INR 1,709 crore. It has also found considerable
reduction in the growth rate of population of cattle, as per the 18th census of
livestock in Bellary.

(Steel Guru)

Goa
to export ore fines at pit heads

With the aim of cleaning up the huge dumps
at various mine sites, the Goa government plans to export ore dumped at pit
heads, it is learnt.